On January 1, 20X1, Frances Corporation started doing business and the owners contributed $200,000 capital in cash. The company paid $24,000 to cover the rent for the office space for the 24-month period from January 1, 20X1, to December 31, 20X2. On March 1, 20X1, MSK Inc. entered into a consulting contract under which Frances Corporation promised to provide consulting to MSK Inc. In return, MSK promised to pay a fee of $150,000, which was to be paid in January 20X2. Frances fulfilled its contractual obligation during 20X1